March 2011
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Kotak Realty Fund sells prime Mumbai commercial property to Tata Realty

In the largest real estate fund exit in India, Kotak Realty Fund sold one of its prime commercial property assets in western Mumbai to a real estate fund of Tata Realty and Infrastructure for an enterprise value of Rs525 crore. Kotak Realty Fund, a unit of Kotak Mahindra Bank, was one of India's first private equity funds and has assets worth $850 million under management. The firm's maiden fund, the Kotak India Real Estate Fund – I, made a hefty profit for it within five years, following the sale of Peepul Tree Properties Pvt Ltd, which owns an information technology park in Goregaon. The Peepul Tree IT park comprises 700,000 sq ft of leaseable area and counts among its tenants firms such as Accenture, HP, BNP, Tata AIG and Integron. The fund, which made an initial investment of Rs95 crore in the project, has received over Rs400 crore following the exit. […]

PE investments down 54% in Feb: Report

Private equity investments in Indian companies declined 54 per cent to US $324 million in February, over the same month a year-ago. “The second month of 2011 saw US $324 million of private equity investments in Indian companies, 54 per cent down from the investments of US $699 million for the same month last year,” according to a report by financial consultant Four-S Services. Besides, the total number of deals announced in February 2011 was lower than that in the year-ago period. In February this year, 22 PE deals were announced, against 23 deals in the same month last year. The year 2011 has so far witnessed investments worth US $755 million, compared to US $1.15 billion for the same period (January-February) last year. […]

Kotak Realty in largest RE fund exit

Kotak India Real Estate Fund I today announced the sale of Peepul Tree Properties Private Limited (Peepul Tree Properties), a wholly-owned undertaking, to Tata Realty Initiatives Fund 1 for an enterprise value of Rs. 525-crore (USD 117-million), thereby scripting India's largest RE fund exits. Peepul Tree Properties owns an IT park in the Mumbai suburb of Goregaon, which has been 96 per cent leased to marquee tenants such as Accenture, HP, BNP, Tata AIG, BOB Legal and General, Integron and Prana Studios. On an initial equity investment of Rs. 95-crore, Kotak India Real Estate Fund I has received over Rs. 400-crore from the exit, including internal accruals, a press release issued here stated. The exit has many firsts to its credit. […]

Bank of India close to buying 51 pct in Bharti AXA Investment

State-run Bank of India is close to buying a 51 percent stake in Bharti AXA Investment Managers, a joint venture between India's Bharti Enterprises and AXA Asia Pacific Holdings Ltd , the Business Standard newspaper reported on Saturday. “We are in an advanced stage of negotiations with Bharti AXA for picking up a majority stake in their asset management company,” the report quoted an unnamed bank official as saying. “Things have more or less fallen in place. We are just awaiting the final contours of the deal. The deal is likely to be closed by the end of this month,” the official said. Bharti Enterprises is a group company of India's top telecoms firm Bharti Airtel . […]

Shriram to dilute 15% stake to Texas Pacific Group

Shriram Capital (SCL), the holding company of all financial services businesses of the Shriram Group, will dilute 15 per cent stake to private equity investor Texas Pacific Group (TPG). TPG, in turn, will invest around Rs 1,800 crore in SCL. The proposed capital is likely to be utilised for the group's proposed foray into various financial and non-financial services and to expand Shriram’s existing businesses. The PE firm is likely to infuse money in SCL over the next 45 to 60 days. According to sources, the money will go into the holding company, 100 per cent owned by Shriram Ownership Trust. This will be the first dilution by SCL to an outside investor. However, TPG is an old partner of Shriram. The PE firm invested in several ventures of the Group companies, including Shriram Transport and Shriram City Union Finance, and is now to become an investor and partner in the holding company. The total value is estimated to be over Rs 5,000 crore in various Shriram Group companies. […]

Leelaventure to sell 14.5% for 600 cr

The Nairs-promoted Hotel Leelaventure plans to sell 14.5% stake to a clutch of private equity funds to raise Rs 600 crore in order to bring down its debt of Rs 3,900 crore. An additional Rs 250 crore would be raised from the sale of the hospitality chain's land in Chennai. The hospitality chain, which has seven properties in its portfolio, would sell 14.5% stake, just a shade less than the mandatory open offer limit of 15%. Rules mandate that if an acquirer purchases 15% stake in a company, it triggers an open offer for an additional 20% stake. “Our shareholders have already approved the fund raising proposal. We are looking to raise Rs 600 crore through a preferential allotment in the next four months,” said Hotel Leelaventure's vice chairman and managing director, Vivek Nair. He declined to reveal the names of the private equity players that have shown an interest in the company. […]

Fortis Global buys 28.6% in ex-Apollo Hospitals in Lanka

Fortis Global Healthcare, an unlisted firm promoted by Malvinder Singh and Shivinder Singh, has acquired 28.6% stake in a leading Colombo listed Sri Lankan hospital, Lanka Hospitals Corporation, formerly owned by its rival at home and the largest hospital chain of India, Apollo Hospitals. Singhs have shelled out $36.3 million (R 162 crore) for the stake. The acquisition is part of a larger strategy of promoters of India’s second largest hospital chain — Fortis Healthcare, to create a pan Asian integrated healthcare network through its overseas invesment arm Fortis Global Healthcare. To pursue its dream, Fortis has already invested over R 1,600 crore in last five months, inclusive of its latest buy in Sri Lanka. This Sri Lankan entry marks Fortis Global's foray into one of Asia's fastest growing economies.Malvinder Mohan Singh, executive chairman of Fortis Global Healthcare said, “Lanka Hospitals is the first step for Fortis Global to build its healthcare business interest in one of the fastest growing economies in Asia. It is one of the most advanced and comprehensive healthcare facility in Sri Lanka. […]

NSE shareholder puts 5% stake on the block

IDBI Capital Market Services has put up to 5% stake of National Stock Exchange (NSE) on the block on behalf of an undisclosed client. The stake could be worth about Rs 900 crore. The merchant banker has invited bids from interested parties who are qualified to buy stakes in stock exchanges. Interestingly, the stake sale offer from one of the existing shareholders of NSE has come at a time when the market regulator Sebi is mulling the recommendations of the Bimal Jalan panel that recommended that stock exchanges should not be allowed to list. In effect, as various commentators have said, if this recommendation is accepted by Sebi, that will put a large number of investors in various stocks exchanges in a spot, limiting their options to exit such investments. […]